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Stock soars on Shaw Bros. plan

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Shares of Hong Kong entertainment conglomerate Shaw Brothers shot up 55.5% on Tuesday, a day after founder and movie mogul Run Run Shaw announced plans to take the company private.

The shares' rise to HK$12.64 ($1.63) in early trading bucked the Hong Kong market's downward trend and marked a record single-day percentage gain for the company, the majority shareholder in Hong Kong's largest broadcaster, Television Broadcasts.

Shaw Brothers in October called off a sale of its TVB assets — planned since May — citing tumultuous financial markets.

Shaw said Monday that he will privatize the company at HK$13.35 ($1.72) a share. He owns about 75% of Shaw Brothers and has a 6.5% interest in TVB.